A report out today has pinpointed Mount Druitt, Campbelltown, Liverpool and the Central Coast as having the highest levels of bankruptcy declarations in NSW.
Mount Druitt 2770 had 163 bankruptcy declarations in 2011, closely followed by Campbelltown 2560 with 146, and Liverpool-Casula 2170 with 144. Three Central Coast postcodes – 2259, 2250, 2261 – had more than 100 bankruptcy declarations each.
It’s the first time the Insolvency and Trustee Service Australia has published postcode-specific bankruptcy figures, and it’s important to note that the population difference between postcodes is disregarded. The reported figure is the total number of bankruptcies per postcode, rather than an average per capita.
Mounting credit card debt and over-committing to real estate purchases have been highlighted as the major contributing factors in many bankruptcy declarations. Other prominent factors include unemployment, relationship breakdowns, and the effects of recent natural disasters.
“Whilst it’s an area where real estate values are moderate, you can still overcommit yourself and … [many] people see bankruptcy as the only way out of the debt spiral. A lot of people leave school unequipped to handle finance, they [don't know] the implications of buying all your furniture on an 18 per cent credit card or a 25 per cent department store credit arrangement.” – Richard Amery, Mount Druitt MP.
There are a multitude of credit card products available from numerous banks and financial institutions and it’s often difficult to find the right card for your current situation. If you’re experiencing a short term credit card debt issue there may be options such as moving your balance to a new credit card that offers a balance transfer deal. Balance transfer offers often give you 6 – 12 months at 0 – 1% per annum, meaning you can transfer your existing credit card debt to the new card and pay the lower level of interest. One crucial rule here is to pay off your debt as quickly as possible, as any balance left at the end of the offer period will attract the full standard interest rate which is often 18 – 21% per annum.
We’re passionate about helping people to get the right deal on their credit card. There is fierce competition between banks and astute borrowers should constantly be comparing their existing credit card deal with other offers. Now is a great time to Compare Credit Cards and make sure you’re getting the right deal.
Another thing that has helped many people to save money is refinancing a mortgage. You no longer need to feel locked in to your existing mortgage and there are plenty of financial institutions out there who will compete for your business. If you’ve currently got a mortgage why not try our Home Loan Comparison service to see if you can save too?